Overview of Idaho Mortgages
Mortgage rates hover around the national average in Idaho. The Gem State is larger than all of New England, but it’s also one of the least populous states in the country. Four Idaho counties have conforming loan limits over the standard mark of $548,250.
|30 year fixed||3.08%||3.08%||0.00|
|15 year fixed||2.44%||2.48%||-0.04|
|30 yr fixed mtg refi||3.11%||3.11%||0.00|
|15 yr fixed mtg refi||2.42%||2.46%||-0.05|
|7/1 ARM refi||3.63%||3.63%||0.00|
|15 yr jumbo fixed mtg refi||2.56%||2.56%||0.00|
National Mortgage Rates
Historical Mortgage Rates in Idaho
Idaho Mortgage Rates Quick Facts
- Median Home Value: $255,200 (U.S. Census Bureau)
- Loan Funding Rate: 59.32% (CFPB)
- Homeownership Rate: 70.6% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,270 (U.S. Census Bureau)
Idaho mortgage rates are roughly equal to the national average, though recently they've been a tad higher. Monthly homeownership costs in the state are fairly low on a national scale.
A financial advisor in Idaho can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.
Idaho Historic Mortgage Rates*
|Year||Idaho Rate||U.S. Rate|
*The FHFA stopped reporting new data in 2018.
Idaho Mortgages Overview
Idaho real estate has been a bit more expensive than the rest of the country in recent years. The median home value in the state is $255,200, while the national median is $240,500.
Most counties in Idaho have a conforming loan limit at the standard $548,250. However, Blaine, Camas and Lincoln counties have a limit of $625,500, while Teton county has a limit of $822,375. This is a reflection of the higher average real estate prices in those counties. FHA limits in Idaho mostly stick to the typical $356,362 limit, with a handful of exceptions.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Idaho is a deed of trust state, meaning when you take out a home loan in the Gem State you’ll likely get a deed of trust instead of an actual mortgage. Lenders who issue mortgages have to go to court to foreclose on the home that the mortgage applies to. But if a trust deed is offered instead, a lender can initiate a power of sale foreclosure by hiring a third party to auction the home it wants to sell, bypassing the court process.
Idaho has some lax disclosure laws for sellers, so it’s important that buyers be vigilant when considering a property purchase. The best course of action is to arrange a property inspection with a well-trusted inspector or company. This is particularly critical when disclosure laws are not as strict as they are in other states, as is the case with Idaho.
30-Year Fixed Mortgage Rates in Idaho
Fixed-rate mortgages are the tried-and-true home loan option for buyers. For people who plan to stay in their new home for a considerable period of time, a fixed-rate mortgage may be especially attractive. The most common type of home loan is a 30-year fixed-rate mortgage. With this mortgage you have three decades to pay off the loan and the interest remains the same for the duration of that period, unless you refinance. Another option for Idaho buyers is a 15-year fixed rate mortgage. This loan comes with a lower interest rate but the monthly payments are higher.
The average rate for a fixed 30-year mortgage in Idaho is 2.76% (Zillow, Jan. 2021).
Idaho Jumbo Loan Rates
Idaho homes are less expensive than the average U.S. home, so it makes sense that the conforming loan limit is about average in almost the entire state. A jumbo loan is a loan that exceeds the respective county's conforming loan limit. For example, this could be a $600,000 loan in Gem County, where the limit is $548,250. These oversize loans are accompanied by higher interest rates. Banks take on a bigger risk when issuing large loan. The higher interest is meant to offset that risk.
The average 30-year fixed jumbo loan rate in Idaho is 2.46% (Zillow, Jan. 2021).
Idaho ARM Loan Rates
An adjustable-rate mortgage (ARM) stands in contrast to a fixed-rate mortgage. Unlike a fixed-rate mortgage, an ARM’s interest rate can “adjust” or change over the period of the loan. Typically an ARM will offer a lower introductory interest rate as compared to a fixed-rate mortgage. That initial period lasts somewhere between one and 10 years. At the end of that period, the interest rate will usually rise. The terms of the loan will spell out how many times the rate can rise and the highest possible level that it can reach.
The average rate for a 5/1 ARM in Idaho is 3.06% (Zillow, Jan. 2021).
Idaho Mortgage Resources
Looking for mortgage assistance in the Gem State? There are a variety of loan, down payment and education programs in place to help homebuyers along in their process.
The Idaho Housing and Finance Association is a sort of one-stop-shop for home financing needs. If you make up to $110,000 ($120,000 in Blaine County), you may qualify for one of their loan products, which include low mortgage rates, homeowner classes and down payment and closing cost assistance.
Idaho First Time Homebuyer is a resource that helps to pair homebuyers with home loan and down payment assistance that will work best for them. As a first-time homebuyer, you’ll have a host of loans and grants you may qualify for.
|Resource||Problem or Issue||Who Qualifies|
|Idaho Housing and Finance Association||Offers loan products, which include low mortgage rates, homeowner education, down payment and closing cost assistance and 35% tax credits worth up to $2,000 per year.||Certain homebuyers making less than $90,000 may qualify.|
|Idaho First Time Homebuyer||Pairs homebuyers with home loan and down payment assistance that will work best for them.||First-time homebuyers.|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; and Not be suspended or debarred from participation in federal programs.|
The United States Department of Agriculture Rural Development set up loan and grant programs to help grow rural Idaho communities while offering safe, affordable housing for residents. Loans and grants are available for people looking to purchase a new home or repair their current home, who meet the program requirements.
Idaho Mortgage Taxes
As an Idaho homeowner, you’re allowed to deduct mortgage interest on your state income tax as well as your federal income tax. The Idaho rules for state itemized deductions generally follow suit with federal rules. In Idaho, there is also no tax charged on real estate property title transfers.
Idaho Mortgage Refinance
If you’re refinancing your Idaho mortgage, there are some options to get you started. First, you don’t have to work with the lender who issued your original mortgage (though you can certainly do this). Feel free to shop around and compare refinance lenders to figure out what works best for your particular situation.
While the Home Affordable Refinance Program (HARP) no longer exists, there is an alternative: the High Loan-to-Value Refinance Option from Fannie Mae.
The Idaho Housing and Financing Association also works with homeowners on refinancing their loans.
Best Places To Get A Mortgage
SmartAsset’s interactive map highlights the best counties in the U.S. (and in each state) for securing a home mortgage. Hover over states and counties to see rankings and data points for each region, or use the map’s tabs to view the top counties for each of the factors included in our analysis.
Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.
To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of the annual principal and interest payments for a $200,000 loan in that location using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset